The Ministry of New and Renewable Energy (MNRE) of India plans to launch US$5bn of transmission lines tenders in phase as of June 2019, in order to connect 175 GW of renewable power capacity to the national grid by 2022.
India needs to invest in its power transmission infrastructure to meet its renewable ambitions, i.e. reaching 175 GW of renewable capacity by 2022 (including 100 GW of solar, 60 GW of wind and 15 GW from biomass and hydropower) and covering 21% of its electricity supply with renewable power in 2021-2022 (10.5% from solar). The total investment for connecting 66 GW of projects is estimated at INR 430bn (US$6.2bn). Since December 2018, India has awarded 12 GW of transmission lines through tenders; another 16 GW will be tendered by the end of June 2019 and 38 GW by March 2022.
The development of renewable capacity in India could be slower than expected though. Tenders for at least 5 GW of renewable energy projects have been cancelled due to bid prices deemed too high and difficulties in acquiring land and duties on solar equipment imports may deter the interest of project developers. Rules for awarding renewable projects were modified in 2017, lowering prices and increasing competition.
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